Sterling rises and rises versus the euro!
The pound has touched its highest against the common currency in 21 months this week, or since September 6th 2012, at 1.2633.
By contrast, sterling was at just 1.1999 on January 1st 2014. Hence, it’s since climbed by +5.28%, or 6 cents.
To put this into context for you, a £250,000 transfer to France would hence be worth +€15,850 more today than at the start of this year.
(Please bear in mind, these are the interbank rates at the time of writing. This means the exchange rate may have changed since then.)
Pound could rise higher, as UK economy grows and grows
What’s more, the pound may exceed its 21-month high against the euro, looking ahead. Here’s why:
1. Sterling may rise, because the UK’s manufacturing sector is growing at its fastest pace in 20 years, says Markit.
2. The pound could jump, because British construction firms are hiring people more quickly than any time since 1997.
3. The pound may strengthen, because the UK’s economy is forecast to grow bigger than France’s by 2020.
4. The euro may decline meanwhile, because the European Central Bank looks set to hold interest rates at just 0.15% for the foreseeable future.
With this in mind, look for the pound to rise even higher against the euro!